1 - Revenue and Capital Budget Monitoring
Renfrewshire Council · 17 November 2022
Back to Finance, Resources and Customer Services Policy Board — 17 November 2022 and its agenda
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To: Finance, Resources and Customer Services Policy Board On: 17 November 2022 Report by: Director of Finance and Resources Heading: Revenue and Capital Budget Monitoring as at 16 September 2022 1. Summary of Financial Position 1.1. The projected revenue outturn at 31 March 2023 for those services reporting to the Finance, Resources and Customer Services Policy Board is an overspend position of £0.894m (0.9%) against the revised budget for the year. 1.2. The projected capital outturn at 31 March 2023 for projects reporting to the Finance, Resources and Customer Services Policy Board is a break-even position. 1.3. This is summarised over the relevant services in the table below and further analysis is provided in the Appendices. Table 1: Revenue Division Revised Annual Budget £000 Projected Annual Outturn £000 Budget Variance £000 Budget Variance % Finance and Resources 42,861 43,214 (353) (0.8%) Environment and Infrastructure 20,112 20,653 (541) (2.7%) Miscellaneous 40,479 40,479 0 0% Total 103,452 104,346 (894) (0.9%)
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Table 2: Capital Division Revised Annual Budget £000 Projected Annual Outturn £000 Budget Variance £000 Budget Variance % Finance, Resources and Customer Services 9,158 9,158 0 0% 2. Recommendations Members are requested to: 2.1. Note the projected Revenue outturn position detailed in Table 1 above; 2.2. Note the projected Capital outturn position detailed in Table 2 above; and 2.3. Note the budget adjustments detailed at sections 4 and 6. 3. Revenue 3.1. The Revenue Budget Monitoring report at Appendix 1 identifies a projected annual overspend of £0.894m (0.9% of total budget) for all services reporting to this Policy Board. Detailed division service reports can be found at the end of this report, along with an explanation of any significant projected variances. 3.2. The projected outturn is based on information currently available, and assumptions made by service budget holders. Any changes to these projections will be detailed in future reports to this Board. 3.3. The main reasons for the projected outturn position are indicated below the tables showing both the subjective analysis (what the budget is spent on) and the objective analysis (which division is spending the budget). 4. Revenue Budget Adjustments 4.1. Members are requested to note from Appendix 1 that budget adjustments totalling £0.362m have been processed since the last report at Period 3, with the main reasons as follows: • + £1.092m additional funding (redetermination) for the full year impact of the 2021/22 Teachers’ Pay Award transferred into Miscellaneous Services; • - £0.930m allocation of NI Social Care Levy budgets (covering 1 April-6 November) from Miscellaneous Services to other Council services; and • + £0.236m allocation of NI Social Care Levy budgets (covering 1 April-6 November) into Finance and Resources and Environment and Infrastructure.
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5. Capital 5.1. The Capital Investment Programme 2022/23 to 2026/27 was approved by the Council on 3 March 2022. For Finance, Resources and Customer Services the approved capital spend for 2022/23 is £9.158m (£9.107m approved Capital Plan). 5.2. The budget movement primarily results from reprofiling in the approved capital programme for Finance, Resources and Customer Services for the year and funding approved by Council for Artificial Pitch Upgrades. Further detail can be found at Appendix 2. 6. Capital Budget Adjustments 6.1. Since the last report, budget changes totalling £0.267m have arisen, which reflect the following: • Budget carried into 2021/22 from 2022/23 (£0.317m): o Lifecycle Capital Maintenance Fund (£0.317m) for cashflow timing of boiler upgrades at Primary schools; • Budget increases in 2022/23 (£0.050m): o Lifecycle Capital Maintenance Fund (£0.050m) for school meals initiative to upgrade ovens, via transfer from Capital Funded from Current Revenue (CFCR).
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___________________________________________________________________ Implications of this report 1. Financial – The projected budget outturn position for Finance, Resources and Customer Services’ Revenue budget is an overspend of £0.894m. Income and expenditure will continue to be monitored closely for the rest of the financial year and, as far as possible, steps will be taken to mitigate any overspend. The projected outturn position for Finance, Resources and Customer Services’ Capital budget is break-even. The Capital programme will continue to be monitored closely for the rest of the financial year and, where necessary, steps will be taken to mitigate any overspend. Any changes to current projections in either Revenue or Capital budgets will be reported to the board as early as possible, along with an explanation for the movement. 2. HR and Organisational Development - None directly arising from this report. 3. Community/Council Planning - None directly arising from this report. 4. Legal - None directly arising from this report. 5. Property/Assets - The Capital expenditure in this board will result in lifecycle maintenance improvements to existing properties and replacement of ICT assets and infrastructure. 6. Information Technology - None directly arising from this report. 7. Equality and Human Rights - The recommendations contained within this report have been assessed in relation to their impact on equalities and human rights. No negative impacts on equality groups or potential for infringement of individuals’ human rights have been identified arising from the recommendations contained in the report because for example it is for noting only. If required following implementation, the actual impact of the recommendations and the mitigating actions will be reviewed and monitored, and the results of the assessment will be published on the Council’s website. 8. Health and Safety - None directly arising from this report.
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9. Procurement - None directly arising from this report. 10. Risk - The potential risk that the Council will overspend its approved budgets for the year will be managed at a Council-wide level by the Chief Executive and Directors. 11. Privacy Impact - None directly arising from this report. 12. Cosla Policy Position - N/a. 13. Climate Risk - None directly arising from this report. __________________________________________________________________ List of Background Papers Revenue Budget and Council Tax 2021/22, Council 3 March 2022. The Capital Investment Programme 2022/23 to 2026/27, Council 3 March 2022 __________________________________________________________________ Authors: Valerie Howie / Kevin Festorazzi / Geoff Borland
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APPENDIX 2 Objective Summary Annual Budget at Period 3 Budget Adjustments Revised Annual Budget at Period 6 Projected Outturn Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Finance and Resources 42,694 167 42,861 43,214 (353) (0.8%) 0 (353) Environment and Infrastructure 19,982 130 20,112 20,653 (541) (2.7%) (523) (18) Miscellaneous 40,414 65 40,479 40,479 0 0.0% 0 0 NET EXPENDITURE 103,090 362 103,452 104,346 (894) (0.9%) (523) (371) Subjective Summary Annual Budget at Period 3 Budget Adjustments Revised Annual Budget at Period 6 Projected Outturn Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Employees 97,613 293 97,906 97,877 29 0.0% (329) 358 Premises Related 8,709 54 8,763 9,185 (422) (4.8%) (42) (380) Transport Related 1,682 0 1,682 1,659 23 1.4% 21 2 Supplies and Services 22,053 0 22,053 22,391 (338) (1.5%) (220) (118) Third Party Payments 2,078 0 2,078 2,054 24 1.2% 24 0 Transfer Payments 57,954 0 57,954 57,954 0 0.0% 0 0 Support Services 2,740 0 2,740 2,689 51 1.9% 15 36 Depreciation and Impairment Losses 7,162 15 7,177 7,177 0 0.0% 0 0 GROSS EXPENDITURE 199,991 362 200,353 200,986 (633) (0.3%) (531) (102) Income (96,901) 0 (96,901) (96,640) (261) (0.3%) 8 (269) NET EXPENDITURE 103,090 362 103,452 104,346 (894) (0.9%) (523) (371) POLICY BOARD : FINANCE, RESOURCES & CUSTOMER SERVICES Budget Variance (Adverse) or Favourable Budget Variance (Adverse) or Favourable RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2022/23 1 April 2022 to 16 September 2022
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APPENDIX 2 Objective Summary Annual Budget at Period 3 Budget Adjustments Revised Annual Budget at Period 6 Projected Outturn Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Finance and Resources Directorate (357) 4 (353) (366) 13 3.7% 24 (11) Audit Services 598 3 601 600 1 0.2% 5 (4) Corporate Governance 3,188 19 3,207 3,138 69 2.2% 45 24 Digital, Transformation & Customer Services 21,157 61 21,218 21,337 (119) (0.6%) (137) 18 Finance and Business Services 11,239 62 11,301 11,233 68 0.6% 68 0 Housing Benefits 4,043 0 4,043 4,043 0 0.0% 0 0 People & Organisational Development 2,456 7 2,463 2,495 (32) (1.3%) (60) 28 Property Services (448) 11 (437) (344) (93) (21.3%) 0 (93) Social care (non-delegated) 818 0 818 1,078 (260) (31.8%) 55 (315) NET EXPENDITURE 42,694 167 42,861 43,214 (353) (0.8%) 0 (353) Objective Heading Digital, Transformation & Customer Services Property Services Social care (non-delegated) The projected overspend reflects the one off costs of migration for the Council's telephony system over the course of the current financial year. POLICY BOARD : FINANCE, RESOURCES & CUSTOMER SERVICES Key Reasons for Significant Projected Variances An overspend in Premises Costs is projected. This is due to an expected increase in energy costs across operational Council properties. An overspend in Premises Costs is projected. This is due to an expected increase in energy costs across Health and Social Care properties Budget Variance (Adverse) or Favourable RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2022/23 1 April 2022 to 16 September 2022
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APPENDIX 2 Subjective Summary Annual Budget at Period 3 Budget Adjustments Revised Annual Budget at Period 6 Projected Outturn Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Employees 34,307 167 34,474 34,411 63 0.2% 21 42 Premises Related 2,728 0 2,728 3,081 (353) (12.9%) 0 (353) Transport Related 76 0 76 53 23 30.3% 21 2 Supplies and Services 9,525 0 9,525 9,719 (194) (2.0%) (126) (68) Third Party Payments 1,745 0 1,745 1,721 24 1.4% 24 0 Transfer Payments 55,157 0 55,157 55,157 0 0.0% 0 0 Support Services 694 0 694 642 52 7.5% 52 0 Depreciation and Impairment Losses 0 0 0 0 0 0.0% 0 0 GROSS EXPENDITURE 104,232 167 104,399 104,784 (385) 24.5% (8) (377) Income (61,538) 0 (61,538) (61,570) 32 0.1% 8 24 NET EXPENDITURE 42,694 167 42,861 43,214 (353) (0.8%) 0 (353) POLICY BOARD : FINANCE, RESOURCES & CUSTOMER SERVICES - FINANCE & RESOURCES RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2022/23 1 April 2022 to 16 September 2022 Budget Variance (Adverse) or Favourable
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APPENDIX 2 Objective Summary Annual Budget at Period 3 Budget Adjustments Revised Annual Budget at Period 6 Projected Outturn Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Building Services (288) 47 (241) (240) (1) 0.4% 0 (1) Street Lighting Maintenance Work 376 0 376 554 (178) (47.3%) (161) (17) Public Building Repairs 3,763 59 3,822 3,823 (1) (0.0%) 0 (1) Soft Facilities Management Services 16,131 24 16,155 16,516 (361) (2.2%) (362) 1 NET EXPENDITURE 19,982 130 20,112 20,653 (541) (2.7%) (523) (18) Objective Heading Building Services Soft Facilities Management Services Street Lighting Maintenance Work There is a projected overspend on repairs and maintenance of street lighting columns due to increased costs of materials, which will be closely monitored during the financial year RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2022/23 Budget Variance (Adverse) or Favourable 1 April 2022 to 16 September 2022 POLICY BOARD : FINANCE, RESOURCES & CUSTOMER SERVICES - ENVIRONMENT AND INFRASTRUCTURE Key Reasons for Significant Projected Variances The service is currently forecast to break even this year; however, it is recognised that costs are under considerable pressure from supply price increases. The position will continue to be closely monitored, with updates provided in future reports. There is an anticipated under-recovery of catering income, which is offset by significant vacancies across the service, and this will continue to be closely monitored throughout the financial year.
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APPENDIX 2 Subjective Summary Annual Budget at Period 3 Budget Adjustments Revised Annual Budget at Period 6 Projected Outturn Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Employees 26,477 75 26,552 26,588 (36) (0.1%) (350) 314 Premises Related 3,141 55 3,196 3,263 (67) (2.1%) (42) (25) Transport Related 1,594 0 1,594 1,594 0 0.0% 0 0 Supplies and Services 10,120 0 10,120 10,263 (143) (1.4%) (94) (49) Third Party Payments 0 0 0 0 0 0.0% 0 0 Transfer Payments 43 0 43 43 0 0.0% 0 0 Support Services 1,082 0 1,082 1,082 0 0.0% (37) 37 Depreciation and Impairment Losses 0 0 0 0 0 0.0% 0 0 GROSS EXPENDITURE 42,457 130 42,587 42,833 (246) (0.6%) (523) 277 Income (22,475) 0 (22,475) (22,180) (295) (1.3%) 0 (295) NET EXPENDITURE 19,982 130 20,112 20,653 (541) (2.7%) (523) (18) RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2022/23 1 April 2022 to 16 September 2022 Budget Variance (Adverse) or Favourable POLICY BOARD : FINANCE, RESOURCES & CUSTOMER SERVICES - ENVIRONMENT AND INFRASTRUCTURE
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APPENDIX 2 Subjective Summary Annual Budget at Period 3 Budget Adjustments Revised Annual Budget at Period 6 Projected Outturn Previous Projected Outturn Variance Movement £000 £000 £000 £000 £000 % £000 £000 Employees 36,828 50 36,878 36,878 0 0.0% 0 0 Premises Related 2,841 0 2,841 2,841 0 0.0% 0 0 Transport Related 12 0 12 12 0 0.0% 0 0 Supplies and Services 2,409 0 2,409 2,409 0 0.0% 0 0 Third Party Payments 333 0 333 333 0 0.0% 0 0 Transfer Payments 2,754 0 2,754 2,754 0 0.0% 0 0 Support Services 965 0 965 965 0 0.0% 0 0 Depreciation and Impairment Losses 7,162 15 7,177 7,177 0 0.0% 0 0 GROSS EXPENDITURE 53,304 65 53,369 53,369 0 0.0% 0 0 Income (12,890) 0 (12,890) (12,890) 0 0.0% 0 0 NET EXPENDITURE 40,414 65 40,479 40,479 0 0.0% 0 0 Subjective Heading Budget Adjustments 1 April 2022 to 16 September 2022 Key Reasons for Significant Projected Variances The budget transfer relates principally to the receipt of funding for 2021/22 full year impact pay award for Teachers from the Scottish Government. Also the allocation of National Insurance increase across the services for the period 1 April 2022 to 06 November 2022 Budget Variance (Adverse) or Favourable POLICY BOARD : FINANCE, RESOURCES & CUSTOMER SERVICES - MISCELLANEOUS RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2022/23
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APPENDIX 2 Prior Years Approved Budget Revised Projected Expenditure Budget Adjustments Budget Outturn Total Approved Projected to 31/03/2022* 2022-23 in 2022-23 2022-23 2022-23 Budget Outurn Project Title to 31-Mar-27 to 31-Mar-27 £000 £000 £000 £000 £000 £000 £000 CORPORATE PROJECTS ICT Infrastructure Maintenance & Renewal Programm 0 1,585 742 2,327 2,327 0 0% 3,927 3,927 0 0% Strategic Asset Management Fund 0 1,800 (1,800) 0 0 0 0% 0 0 0 0% Energy Efficiency Programme 0 102 0 102 102 0 0% 102 102 0 0% Lifecycle Capital Maintenance (LCM) Fund 0 5,090 (1,086) 4,004 4,004 0 0% 11,627 11,627 0 0% Artificial Pitch Upgrades 0 0 1,200 1,200 1,200 0 0% 1,200 1,200 0 0% Digital Infrastructure Provision 1,546 0 390 390 390 0 0% 1,936 1,936 0 0% Commnunity Empowerment Fund 0 293 309 602 602 0 0% 602 602 0 0% Greenspaces and Parks 946 237 (237) 0 0 0 0% 946 946 0 0% Villages Improvement Fund 0 0 150 150 150 0 0% 150 150 0 0% Retail Improvement Fund 0 0 150 150 150 0 0% 150 150 0 0% CO2 Monitors 0 0 233 233 233 0 0% 233 233 0 0% TOTAL FINANCE, RESOURCES & CUSTOMER SERVICES BOARD 2,492 9,107 51 9,158 9,158 0 0% 20,873 20,873 0 0% *Rolling programmes have a prior year year expenditure of £0 as the expenditure is not directly linked from one year to the next as a singular project. RENFREWSHIRE COUNCIL CAPITAL INVESTMENT STRATEGY - NON-HOUSING SERVICES 1st April to 16th September 2022 POLICY BOARD: FINANCE, RESOURCES & CUSTOMER SERVICES Current Year 2022-23 Full Programme - All years Budget Variance (Adverse) or Favourable Budget Variance (Adverse) or Favourable